How To Fight Off Bankruptcy

Declaring bankruptcy should be your last recourse when your
business is struggling and you're facing a mountain of debt.

There are several other strategies you can try before you resort
to throwing in the towel; Michelle Goodman has a few good
suggestions in Entrepreneur.

In summary:

Seriously cut your budget: Slashing rent,
office expenses, and personal spending is one of the best
things you can do when your business has run out of money. Cut
out as much as you can; downgrading your office space is one
common strategy for saving thousands.

Find new sources of income: You could start
consulting on the side, or get a second job, even if it has
nothing to do with your business.

Negotiate with creditors: One small
business owner in the article reports that he called his banks
and asked them if they would lower the interest rate in return
for him doubling his minimum payment. They agreed."If you can show them a plan that at least has them
getting back more than they would if you were to declare
bankruptcy, they'd rather see that than see you walk away," one
of Goodman's sources says.

Or have someone else do it for you:
Goodman also suggests working witha business debt
settlement program -- her research indicates that around 75% of
businesses who do so end up surviving.

Adopt better financial habits across the
board: Try developing good habits such as going
cash-only (or "debit-card only"), and remembering to constantly
track everything from sales to conversion rates.